ASX listing issues hit once Turnbull-backed PlayUp

PlayUp, a fantasy sports gambling outfit previously backed by the family of Prime Minister Malcolm Turnbull, is hoping to raise $US40 million ($51.5 million) through a listing on the Australian Securities Exchange.

PlayUp has recently acquired CrownBet’s DraftStars and is planning to buy Sydney-based ClassicBet if it obtains approval from the Northern Territory Racing Commission or Harness Racing NSW. The value of the deals was not disclosed.

The acquisitions are expected to lift PlayUp’s gross gaming turnover by more than $200 million and fuel its ambitions to become one of the biggest fantasy sports platform operators.

PlayUp, which has 400,000 registered users, has also revealed that it will enter the cryptocurrency craze, by introducing a new online currency PlayChip as part of its fantasy sports platform.

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PlayUp is hoping to list on the Nasdaq in the US and ASX via a reverse takeover of Perth-based renewable energy minnow Mission NewEnergy, according to company filings by Mission in the US last week.

However, the plans have already hit a stumbling block, with Mission disclosing to the US Securities and Exchange Commission that the ASX had raised concerns about PlayUp’s ambitions.

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“At present, the ASX has expressed concern to Mission NewEnergy regarding the proposed transaction and the suitability of the company for listing on the ASX post-completion of the transaction,” the company said in its US filings.

“As a result, Mission may be unable to satisfy any of the regulatory requirements of the ASX until ASX’s concerns are first addressed by Mission.

“Mission will continue to liaise with ASX to address these concerns. As such investors or potential investors should exercise caution.”

Under the deal, Mission will wholly acquire PlayUp Australia in consideration for the issue of shares in Mission.

Mission will undertake a capital raising of new shares to raise at least $US40 million. The US filings show PlayUp could be valued at as much as $US120 million as a result of the deal.

Mission is yet to make an announcement to the ASX about the plans. A spokesman for the company said Mission had lodged disclosures to the ASX.

"Despite our lobbying and legal efforts, the ASX has for unknown reason deemed the release unfit and as such blocked their release," the spokesman said.

The deal is also dependent on PlayUp completing its initial coin offering of the PlayChip.

Under its old model, advertisers funded PlayUp’s fantasy games and prize money was given in the form of gift cards or virtual Visa/Mastercard platform.

After the inital coin offering, players will be able to play and earn rewards in the PlayChip cryptocurrency. The change will allow players in different countries to play using the same currency. end

Sydney entrepreneur Daniel Simic resurrected the PlayUp brand after the original owner of the business Revo collapsed into liquidation in 2016. Mr Simic was not involved with Revo ahead of its collapse.

Mr Simic said in the US company filings that following the integration of blockchain and the dual listing PlayUp will become the globally dominant player in fantasy sports.

“The network effects of successful crypto currencies are astounding and by introducing the PlayChip, we envisage significant user growth as we address the demands of a growing and key market segment of the global online gaming community.”

The collapse of Revo, which was chaired by former NSW premier Nick Greiner up until early 2015, caused a sensation when it was revealed its long list of high profile investors including Mr Turnbull's family, were facing paper losses of $100 million.

Those investors included billionaire Bruce Mathieson, former Telstra chairman Bob Mansfield as well as famed Queens Counsel Allan Myers and rich listers Richard Smith and John Higgins. Cricketers Steve Waugh and Adam Gilchrist were also creditors to the collapsed owner of PlayUp.

Draftstars was founded by gaming entrepreneur Matt Tripp and the James Packer backed CrownBet in April 2015 with Seven West Media, Fox Sports and the AFL becoming shareholders in the venture. It has 100,000 active users.